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Stocks fell to close the week after Amazon and Apple's earnings reports yesterday.
With most of the economy closed, there's not a lot of optimism among investors that next week's earnings reports will be able to drive the market higher.
And to add to that, there are rumblings that the United States may impose more tariffs on China.
The Dow fell 622 points, or about 2.5% to close the day.
Here's how our experts – Chris Johnson, Tom Gentile, D.R. Barton, Jr., and Shah Gilani – think investors should be positioning themselves headed into the weekend and what to expect next week.
- Chris thinks stocks are ripe for a pullback that will continue into next week.
- We've seen irrational buying in the wake of the Fed announcements and earnings results.
- More than 60% of S&P 500 and Nasdaq 100 stocks are overbought
- Chris expects poor earnings to come from the companies that report next week. That will likely take the market lower along with additional unemployment gains.
- Investors would be wise to tighten their limit sell orders, especially on profitable positions.
- You could also dollar-cost average into some protective hedged positions like SDS, SRTY, and SKF.
- Tom gave live viewers free access to his most recent newsletter. In it, he takes an in-depth look at the Fed, SPY, TLT, FXE, and USO.
- You can find the full report here.
- Starting Monday, Tom will only be conducting his "Markets Live" session once a week (every Monday). That's because, starting Tuesday, Tom is starting a new and exclusive two-month mentorship for a small group of investors… It's called the "Triple Threat Trading System," and it includes:
- How the triple threat system works with proven back-tests that can be applied to trading patterns with high probabilities of success.
- Stock selection – how to build a stock list with all the options essentials you'll need to trade within your system.
- How to build your own trading system and master your strategy.
- Sign up for the free event from 2 p.m. to 3:30 p.m. EDT on Tuesday May 5, here.
D.R. Barton, Jr. (1:30 p.m. EDT)
- D.R. thinks investors should continue to stay away from the airlines.
- The airline industry is one of the last businesses that will see customers return, even if governments are successful in reopening their economies. Not only will leisure travel be disrupted, but business travel may see a permanent reduction because more businesses are discovering they can do the same work remotely.
- Yesterday, D.R.'s advice to buy puts on the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) and AMC Entertainment Holdings Inc. (NYSE: AMC) paid off.
- The SPY closed down 2.6%, and AMC was down 7%.
- But today, D.R. is not waiting for life to return to normal… and neither should you.
- That's why he just launched a new service to give you a competitive advantage – today – that can help you make 100% gains every nine trading days on average.
- Here's how to do it.
- Shah is bearish and thinks the negative momentum we experienced today will continue next week.
- He's bearish on these stocks in particular:
- Tesla Inc. (NASDAQ: TSLA) – Shah is confused by the comments today from Elon Musk, who said he thinks the stock is overvalued.
- The Walt Disney Co. (NYSE: DIS) – Shah is anticipating disappointing earnings when it reports earnings next week, on May 5.
- Shah is also bearish on Nordstrom Inc. (NYSE: JWN) and Under Armour Inc. (NYSE: UAA) because retail clothing sales are not essential.
Catch us tomorrow – starting LIVE again at 8:45 a.m. EDT with Chris Johnson, right here.
If you missed our live streams today, you can now replay them on our YouTube channel, here.
Got a question you want our experts to cover? Send us a note.
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